Zainab Ahmed
News From MDA'STop Story

Despite IMF Warning, Nigeria Secures Another $247 million Foreign Loan

340

Despite the International Monetary Fund (IMF) warning on Nigeria’s rising debt and taking loans from foreign institutions, the Federal Government has approved another foreign loan of $247.3 million for infrastructure development.

While the IMF says that rising government debt levels could make the global economy more vulnerable to another severe downturn, the federal  government in a swift reaction had allayed fears over the nation’s rising debt profile, insisting that the loans taken so far are sustainable.

Nigeria’s domestic and foreign debt had jumped from N12.12 trillion in 2015 to N24.38 trillion in 2018.

The Minister or Finance, Zainab Ahmed, said the loans are $150 million from African Development Bank (ADB) for rural electrification projects; $50 million from Africa Grow Together Fund for more electrification projects; and $20million from French Development Agency for onward lending to Lagos State for strategic urban roads rehabilitation.

According to the minister, “Council approved three memos for ministry of finance. First it approved $150 million loan facility from African development bank and $50 million loan from African Grow Together Fund to finance the Nigeria electrification project. The project is a nation wide initiative to be implemented by the rural electrification agency. The project aligns with the strategy of federal government on electrifying rural community. The project has four components, first is solar hybrid mini-grid for rural economic development, the second is productive appliances equipment for up-grid communities and the third is energising education while the fourth component is institutional capacity building.

“The impact of the project when fully implemented, about 500,000 people will be able to have access to electricity for about 105,000 households. The maximum power that will be generated will be 76.5 megawatts installed generating capacity part of which is 68,000 megawatts of solar.

“Eight universities will benefit from this scheme and about 20,000 small, micro, medium enterprises across different communities in the nation. 

“The second approval the north Core dorsal regional transmission project. This is a project that is part of the pipeline for the pipeline for the west Africa power pull priority projects. The intention is for the creation of regional power pull in the region of west Africa. The post project aims to connect Nigeria, Niger, Benin Republic, Togo, Burkina Faso with a high voltage 330 kilowatts transmission line, to facilitate energy trade amongst participants.

“The project is in the total sum of $640 million out of which each of the four countries involved has a component. Nigeria has the smallest component in this pact which is a total loan of $27.3 million IADE  facility, it is a concessionary loan. This is a loan that the four countries are taking together, the other three countries have concluded theirs, so this is one of the final stages for Nigeria to conclude its process.

The minister said the $20million loan from France will be obtained for onward lending to Lagos State Government to rehabilitate and open up strategic urban roads, including Marina interchange in the heart of the commercial city, that will be of direct benefit to about 1.8 million road users.

Ahmed disclosed that the project would be handled by the Lagos State government, which the Federal Government has determined to be capable of repaying the debt as and when due.

“The third load approval is $20 million, for the Lagos State Strategic Transport Master Plan, this facility is from the French Development Agency. The objective of the project is to improve the living conditions of the inhabitants of Lagos urban area and to promote urban development sitting by efficient and effective transport system. The project has two major components, first is to rehabilitate urban roads and the creation of minimum of eight equality bus corridors and the creation of two multi-model inter-changes at Marina and Mile 2. The second objective is to provide technical support for implementation and management.

“When completed, the project is expected to impact 1.8 million inhabitants of Lagos State and accumulative 1.5 million users per day for inter-model inter-changes without about 620,000 boarding at Mile 2 and 480,000 boarding at Marina. Another estimated 630,000 boarding at TBS.

Leave a comment

Related Articles

NNPCL Chief, Kyari, Unveils Strategic Priorities for Africa’s Sustainable Energy Development

Mele Kyari, the Group Chief Executive Officer of the Nigerian National Petroleum...

Five months after cabinet reshuffle: Tinubu orders ministers to render account of stewardship

President Bola Tinubu has directed his ministers to provide an immediate account...

Just in: CBN Introduces New ATM Transaction Fees Effective March 1

The Central Bank of Nigeria (CBN) has announced a review of transaction...

UCH power outage: Minister brokers deal with IBEDC, to restore electricity in 48 hours

Following the Minister of Power, Dr. Adebayo Adelabu’s intervention, the Ibadan Electricity...

VP Shettima Reaffirms Tinubu’s Commitment to Bridging Financial Gaps, Achieving $1trn Economy

Vice President Kashim Shettima has reaffirmed President Bola Tinubu’s commitment to economic...

Just in: Supreme Court reserves judgments in 4 Rivers political dispute cases

The Supreme Court has reserved its judgments in four separate cases related...

Edo gov. poll tribunal: Gov. Okpebholo closes defence, calls lone witness

Edo Gov. Monday Okpebholo on Monday in Abuja opened and closed his...

NAFDAC cracks down on counterfeit medicines, seizes fake drugs in Anambra market

The National Agency for Food, Drug Administration and Control (NAFDAC) has launched...

CBN Reschedules Monetary Policy Committee Meeting for February 18-19

The Central Bank of Nigeria (CBN) has announced a new date for...

Just in: Alleged terrorism: Justice Nyako adjourns Nnamdi Kanu’s trial indefinitely

Justice Binta Nyako of the Federal High Court, Abuja, has adjourned the...

N495m debt: Months-long power cut brings UCH Ibadan to grinding halt

The premier world-class University Teaching Hospital (UCH), Ibadan, Oyo State, is on...

Another Niger State Tanker Explosion: Latest Tragedy Fuels Push for Enhanced Safety Protocols

A catastrophic gas explosion rocked Sabon Wuse in Tafa Local Government Area...

Nigeria introduces hassle-free, contactless passport renewal system for European-based citizens

After its successful implementation in Canada, the Minister of Interior, Mr. Olubunmi...

6-3-3-4 not scrapped, only proposing migration to 12-year compulsory education, Minister clarifies

Education Minister Dr. Tunji Alausa, has clarified media reports that the federal...

FG announces reforms, plans to replaces JSS, SSS with 12-year basic education model

After 42 years of its introduction into the education system, the Federal...

NPA Announces 15% Port Tariff Increase, First in 32 Years

The Federal Government, through the Nigerian Ports Authority (NPA), has announced a...

Pres. Tinubu announces shake up headships, councils of federal universities

President Bola Tinubu has announced changes in the leadership positions of some...

N4.52trn Budget increase: Tinubu Unveils Allocation Details

President Bola Tinubu has revealed the allocation details of the N4.52 trillion...

Breaking: Bandits abduct ex-NYSC DG, retired Brig.-Gen Tsiga, others in Katsina

Bandits have reportedly kidnapped the former Director General of the National Youth...

Tinubu Mourns Loss of 17 Young Lives in Zamfara Islamic School Fire Tragedy

President Bola Tinubu has extended his deepest condolences to the families and...